Here is a very interesting case about risk management in the crypto market. MEV Capital went through a very complicated situation when deUSD lost its peg last October. What happened was that this triggered cascading liquidations across several protocols, and the company ended up suffering losses exceeding $100 million. The impact was quite severe — the AUM that was at $1.5 billion at its peak dropped to around $300 million. Basically an 80% decline in just a few months. The situation became so critical that Belem Capital, which had a significant initial capital invested in managing with MEV, decided to terminate the management mandate and bring the institutional asset management team in-house. This shows how important it is to have well-structured risk frameworks when operating with large volumes. It seems that Belem preferred to internalize these operations to have more control over execution and risk protocols. It’s a reminder of how depegging events can have a domino effect very quickly in the market.